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Sandesh Prabhudesai in Panaji

The Goa government has granted permission to the Reliance Salgaoncar Pvt Ltd, building the states's first power miniproject, to sell the additional power it generates to private parties. The company is a joint venture between Reliance Industries of Dhirubhai Ambani and his son-in-law, Dattaraj Salgaoncar.

The project recently changed over from the open-cycle to combined-cycle method as per the central government's guidelines. The state government has allowed it to sell the excess power to private parties, but only to new consumers. With the changeover, the project will generate 10 mw more power, a total of 49.8 mw.

Though the government will buy only 39.8 mw power from RSPL as per the old power purchase agreement, Goa Chief Minister Pratapsing Rane said he retained the discretion to buy additional power, if generated and unsold. "But I don't think any surplus will remain," he added.

The chief minister claims that by doing so, it would benefit the consumers in the tariff rate. The new power purchase agreement would ultimately cost the consumer 11 paise less per unit, though the consumer will have to pay an extra charge of 17 paise per unit when the project begins. The project is slated to start next year.

The tariff quoted in the original agreement began with Rs 2.69, reaching Rs 3.83 by AD 2005. But as per the new agreement, the tariff will be Rs 2.86 per unit going up to Rs 3.72 after seven years.

The state government is also eagerly waiting the central government's clearance to to allow the privatisation of transmission and distribution of power, which tasks would also be given to RSPL.

At present, the state's existing rate of transmission and distribution losses is 28 per cent, the highest in the country. This is one of the reasons why several multinational companies are shying away from the tourist state as frequent voltage fluctuating is a major headache for all the new units set up in the state. The Goa government is hopeful privatisation will change the scenario.